Legal Guide

The Cost of Filing an LLC in California Is Currently $0

In an effort to stimulate economic growth and encourage new business ventures, California is taking a bold step by waiving the initial formation and qualification filing fees for aspiring new entrepreneurs. With the enactment of the new budget bill, SB154, California is taking the unique step of waiving the initial formation and qualification filing fees for corporations, limited liability companies, and limited partnerships. The fees will be waived for one year, from July 1, 2022, to June 30, 2023.

Lowering Barriers to Entry:

Starting a new business often comes with various costs, including formation and qualification filing fees. By waiving these charges, California State is removing a significant financial barrier for entrepreneurs. This action encourages more individuals to pursue their business ideas, even if they have limited financial resources. Eliminating the barriers to entry opens doors for aspiring entrepreneurs who may have otherwise hesitated due to the upfront costs associated with starting a business.

Encouraging Entrepreneurship and Innovation:

Exempting formation and qualification filing fees sends a clear message that the state values and supports entrepreneurship and innovation. It’s a good initiative to empower aspiring business owners by acknowledging that their ideas and endeavors are essential to economic growth and development. By nurturing a culture of entrepreneurship, the state is fostering an environment that encourages creativity, problem-solving, and providing new business opportunities.

Attracting Investment and Job Creation:

By eliminating formation and qualification filing fees, the state becomes an attractive destination for investors seeking to fund promising startups and businesses. The waived fees reduce the financial burden on entrepreneurs, freeing up capital for investment in core business activities, research and development, and job creation. This creates a ripple effect in the local economy, as new businesses often require goods and services from other businesses, leading to increased economic activity and potential job opportunities.

Supporting Small Businesses and Startups:

Small businesses and startups play a crucial role in driving economic growth and job creation. By omitting the initial formation and qualification filing fees, the state is providing a helping hand to these budding ventures. This support allows small businesses to allocate resources to essential areas such as marketing, product development, and infrastructure, enabling them to grow and thrive in their early stages.

Boosting State Competitiveness:

Granting exemption on formation and qualification filing fees for new businesses enhances the state’s competitiveness on a regional and national level. It positions the state as an attractive destination for entrepreneurs, potentially drawing talent and investment away from neighboring states. This competitive advantage can lead to a stronger and more diverse business ecosystem, ultimately benefiting the state’s economy as a whole.


Taking this extraordinary initiative to empower new businesses by waiving formation and qualification filing fees is a proactive and strategic move by the state to promote business growth, foster entrepreneurship, attract investment, and support small businesses and startups. This initiative lowers barriers to entry, encourages innovation, and positions the state as an attractive destination for aspiring entrepreneurs. By taking advantage of these waived fees, entrepreneurs can embark on their business journeys with reduced financial burdens and contribute to the state’s economic prosperity.

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